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America’s Greatest Stock-Picking Secrets 83

Price 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 2.8 2.4 Volume 12,000,000 7,000,000 4,000,000 2,000,000 © 2009 Investor’s Business Daily, Inc.
Mar 1997

Dec 1996
2/1
S&P 500 Sep 1996

n n h price dow w e Volume increase e a a n m u u price closes down w d s c c Jun 1996 Mar 1996
e or sell: new high off 2 g w uce or sell: ell Reduce or s o 2 out of3 weeks is not a base, 2 out of 3 e eeks is not a base b t weeks big volume with price dow weeks big volume with pr w m o g g g s und n bou bo Add: rebo d in price above in price above e e v b price
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tight closes
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p- p d a e ound d Add: rebound ound d d d Add: rebo e Ad A from below m bel e m b -week line e 10-wee 10- to cross line to cross line s oc on volume u Volume increase increase Jun 1995 Mar 1995
Buy: 9-week cup week cup Buy: 9 y with-handle and t base-on-base b s b y y p l 2/1 Dec 1994 Sep 1994 PeopleSoft increased 1145% in 129 weeks.
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IPOs are young entrepreneurial innovators l i i i e y that help drive every new market cycle and that help drive every new market cycle and r y d increase our standard of living. g g r o Market correction Market correction r Buy Buy Faulty base aulty base y y 20-week cup- 2 with-hand
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IPO
Faulty base aulty base a Sep 1993 Jun 1993
PeopleSoft–1994 Weekly Chart IPO O * * Mar 1993 Dec 1992

Price = 20*eps 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12